Breaking News

Sun Hung Kai's Thomas Kwok Sentenced to 5 Years in Jail
Tweet TWEET

Metro Bancorp Reports Record Quarterly Net Income of $5.1 Million; EPS up 25% and Loans Grow 14%

  Metro Bancorp Reports Record Quarterly Net Income of $5.1 Million; EPS up   25% and Loans Grow 14%  Business Wire  HARRISBURG, Pa. -- July 23, 2014  Metro Bancorp, Inc. (Metro or the Company) (NASDAQ Global Select Market Symbol: METR), parent company of Metro Bank, today reported record quarterly net income of $5.1 million, or $0.35 per diluted common share, for the quarter ended June30, 2014, compared to net income of $4.0 million, or $0.28 per diluted common share, for the second quarter of 2013. The Company also reported net loan growth of $221.7 million, or 14%, over the past twelve months.   Financial Highlights (in millions, except per share data)                                                                                  Quarter Ended                            Six Months Ended                                          %                                      %           06/30/14    06/30/13    Increase     06/30/14   06/30/13   Increase Total        $ 2,868.9     $ 2,658.4     8    % assets                                                                                       Total loans          1,827.5       1,605.8     14   % (net)                                                                                       Total          2,187.0       2,168.8     1    % deposits                                                                                                                                                       Total        $ 31.5        $ 29.9        5    %       $  61.9      $  59.6      4    % revenues                                                                                       Net            5.1           4.0         26   %          10.0         7.7       30   % income                                                                                       Diluted net income       $ 0.35        $ 0.28        25   %       $  0.70      $  0.54      30   % per common share                                                                                                                                                      “Our continued focus on increasing the Company's profitability is evidenced by another quarter of record net income,” said Gary L. Nalbandian, the Company's Chairman and Chief Executive Officer. "Total revenues grew by 5% for the quarter over the prior year same quarter and we remain diligent with our expense management. We continue to strengthen the Company's balance sheet, as well with 14% net loan growth over the past twelve months and continued improvement in asset quality."  Income Statement Highlights    *The Company recorded net income of $5.1 million, or $0.35 per diluted     common share, for the second quarter of 2014 compared to net income of     $4.0 million, or $0.28 per diluted common share, for the same period one     year ago; a $1.0 million, or 26%, increase. Net income for the first six     months of 2014 totaled $10.0 million, or $0.70 per diluted common share;     up $2.3 million, or 30%, over $7.7 million, or $0.54 per diluted common     share recorded for the first half of 2013.   *Total revenues (net interest income plus noninterest income) for the     second quarter of 2014 were $31.5 million, up $1.6 million, or 5%, over     total revenues of $29.9 million for the same quarter one year ago and were     up $1.1 million, or 4%, over total revenues of $30.4 million for the     previous quarter. Total revenues for the first half of 2014 increased $2.3     million, or 4%, over the first half of 2013.   *Return on average stockholders' equity ("ROE") was 8.30% for the second     quarter of 2014, compared to 6.90% for the same period last year. ROE for     the first six months of 2014 was 8.36%, compared to 6.59% for the first     half of 2013.   *The Company's net interest margin on a fully-taxable basis for the second     quarter of 2014 was 3.59%, compared to 3.56% recorded in the first quarter     of 2014 and compared to 3.62% for the second quarter of 2013. The     Company's deposit cost of funds for the second quarter was 0.26%, compared     to 0.27% for the previous quarter and compared to 0.29% for the same     period one year ago.   *The provision for loan losses totaled $1.1 million for the second quarter     of 2014, compared to $900,000 for the previous quarter and compared to     $1.8 million for the second quarter one year ago. The provision for loan     losses for the first half of 2014 was down $2.1 million, or 51%, from the     first half of 2013.   *Noninterest expenses for the second quarter of 2014 were $23.0 million, up     $239,000, or 1%, compared to the previous quarter and up $661,000, or 3%,     over the same quarter last year. Total noninterest expenses for the first     six months of 2014 were up $1.1 million, or 2%, compared to the first six     months of 2013.  Balance Sheet Highlights    *Net loans grew $49.2 million, or 3%, on a linked quarter basis to $1.83     billion and were up $221.7 million, or 14%, over the second quarter 2013.   *Nonperforming assets were 1.42% of total assets at June30, 2014, compared     to 1.57% of total assets for the previous quarter and compared to 1.81% of     total assets one year ago.   *Total deposits were $2.19 billion, up $18.2 million, or 1%, compared to     same quarter last year.   *Metro's capital levels remain strong with a Tier 1 Leverage ratio of 9.57%     and a total risk-based capital ratio of 14.55%.   *Stockholders' equity totaled $248.8 million, or 8.67% of total assets, at     the end of the second quarter 2014. At June30, 2014, the Company's book     value per share was $17.45. The market price of Metro's common stock     increased by 15% from $20.03 per common share at June30, 2013 to $23.12     per common share at June30, 2014.  Income Statement Overview                                                         Three months ended                   Six months ended                                                                  June 30,                             June 30, (dollars in thousands,    2014       2013       %        2014       2013       % except per                                Change                               Change share data) Total           $ 31,490   $ 29,933   5    %   $ 61,903   $ 59,643   4    % revenues Provision for loan          1,100        1,800      (39  )       2,000        4,100      (51  ) losses Total noninterest      23,021       22,360     3          45,803       44,689     2     expenses Net income       5,081        4,048      26         10,025       7,693      30    Diluted net income per    $ 0.35     $ 0.28     25   %   $ 0.70     $ 0.54     30   % common share                                                                                       Metro recorded net income of $5.1 million, or $0.35 per diluted common share, for the second quarter of 2014 compared to net income of $4.0 million, or $0.28 per diluted common share, for the second quarter of 2013. On a linked quarter basis, net income increased $137,000, or 3%.  Net income for the first six months of 2014 was $10.0 million compared to $7.7 million recorded in the first six months of 2013, up 30%. Earnings per diluted common share for the first half of 2014 were $0.70 compared to $0.54 for the same period last year, a 30% increase.  Total revenues (net interest income plus noninterest income) for the second quarter of 2014 were $31.5 million, up $1.6 million, or 5%, over the second quarter of 2013. Total revenues for the first six months of 2014 were $61.9 million, up $2.3 million, up 4%, over the first half of 2013.  Noninterest expenses for the quarter totaled $23.0 million, up $661,000, or 3%, compared to the same period in 2013. On a linked quarter basis, total noninterest expenses were up $239,000. Total noninterest expenses for the first half of 2014 were $45.8 million, up $1.1 million, or 2%, over the same period last year.  Net Interest Income and Net Interest Margin  Net interest income for the second quarter of 2014 totaled $24.0 million, up $1.4 million, or 6%, over the second quarter of 2013. For the first six months of 2014, net interest income totaled $47.3 million versus $44.9 million for same period in 2013, a $2.4 million, or 5%, increase.  Average interest-earning assets for the second quarter of 2014 totaled $2.72 billion versus $2.68 billion for the previous quarter and were up $172.5 million, or 7%, over the second quarter of 2013. Average loans receivable increased by $202.8 million, or 12%, and average investment securities decreased by $30.3 million, or 3%, for the second quarter 2014 compared to the same period one year ago. Average interest-bearing deposits totaled $1.69 billion for the second quarter of 2014, up $37.4 million, or 2%, over the same period of 2013 and average noninterest-bearing deposits for the second quarter 2014 were $476.6 million, up $36.0 million, or 8%, over the second quarter last year. Average interest earning assets for the first six months of 2014 totaled $2.70 billion versus $2.52 billion for the first six months of 2013, an increase of $177.3 million, or 7%.  The net interest margin for the second quarter of 2014 was 3.50%, up 2 bps from the 3.48% recorded for the previous quarter and down 2 bps from the second quarter one year ago. The net interest margin on a fully-taxable basis for the second quarter of 2014 was 3.59%, up 3 bps over the previous quarter and down 3 bps compared to 3.62% for the second quarter of 2013.  The net interest margin for the first half of 2014 was 3.49%, down 6 bps from the 3.55% recorded for the first six months of 2013. On a fully-taxable basis, the net interest margin for the first six months of 2014 was 3.58%, down 6 bps compared to 3.64% for the first half of 2013.  The Company's deposit cost of funds for the second quarter of 2014 was 0.26%, compared to 0.27% for the previous quarter, and down 3 bps from 0.29% recorded in the second quarter one year ago. Metro's deposit cost of funds decreased from 0.30% in the first six months of 2013 to 0.26% for the same period in 2014. The total cost of all funding sources for the second quarter was 0.31%, compared to the same amount for the previous quarter and down 2 basis points from the same period in 2013.  Change in Net Interest Income and Rate/Volume Analysis  As shown in the following table, the increase in net interest income on a fully tax-equivalent basis for the second quarter and for the first six months of 2014 over the same periods of 2013 was primarily due to an increase in the level of interest earning assets, offset partially by a slightly lower net interest margin. Lower yields on interest earning assets were partially offset by a reduction in the Company's cost of funds.                           (dollars in thousands)   Tax Equivalent Net Interest Income                            Volume      Rate           Total        % 2014 vs. 2013                                                                         Change      Change         Increase     Increase 2nd Quarter              $ 2,246   $ (885   )   $  1,361   6    % Six Months               $ 4,585   $ (2,258 )   $  2,327   5    %                                                                           Noninterest Income  Noninterest income for the second quarter of 2014 totaled $7.5 million, up $161,000, or 2%, over the second quarter one year ago. Service charges and fees for the second quarter were $7.4 million, up $264,000, or 4%, over the second quarter last year. Gains on the sale of loans totaled $138,000 for the second quarter of 2014 versus $250,000 for the same period in 2013.  Noninterest income for the first six months of 2014 decreased $136,000, or 1%, compared to the first half of 2013. Service charges and fees were up 2% for the first half of 2014 compared to 2013 while gains on the sale of loans were $274,000 during the first six months of 2014 compared to $663,000 in the same period of 2013. The decrease in loan sale gains for both second quarter and first six months was the result of a lower level of residential loan sales to the secondary market in 2014 compared to the same periods in 2013. Net gains on sales of securities during the first six months of 2014 were $11,000 compared to net gains of $21,000 in the first six months of 2013.  The breakdown of noninterest income for the second quarter and for the first six months of 2014 and 2013, respectively, is shown in the table below:                                                                              Three months ended                 Six months ended                 June 30,                             June 30, (dollars in   2014      2013        %          2014       2013       % thousands)                                Change                               Change Service charges, fees and        $ 7,357   $ 7,093     4    %     $ 14,288   $ 14,025   2   % other income Gains on sales of          138         250         (45  )       274          663        (59 ) loans Net gains (losses) on sales/calls    —        (9    )   (100 )      11        21       (48 ) of securities Total noninterest   $ 7,495   $ 7,334    2    %   $ 14,573   $ 14,709   (1  )% income                                                                                      Noninterest Expenses  Noninterest expenses for the second quarter of 2014 were $23.0 million, up $661,000, or 3%, compared to $22.4 million recorded in the second quarter one year ago. For the first six months of 2014, noninterest expenses totaled $45.8 million, up $1.1 million, or 2%, over $44.7 million recorded for the first half of 2013.  The breakdown of noninterest expenses for the second quarter and for the first six months of 2014 and 2013, respectively, are shown in the table below:                                                                              Three months ended                 Six months ended                 June 30,                             June 30, (dollars in   2014       2013       %        2014       2013       % thousands)                                Change                               Change Salaries and             $ 11,055   $ 10,391   6   %    $ 22,482   $ 21,216   6   % employee benefits Occupancy and               3,098        3,335      (7  )        6,603        6,545      1 equipment Advertising and               376          389        (3  )        769          745        3 marketing Data              3,320        3,276      1            6,570        6,482      1 processing Regulatory assessments       584          551        6            1,153        1,085      6 and related costs Other          4,588     4,418    4        8,226     8,616    (5  ) expenses Total noninterest   $ 23,021   $ 22,360   3   %    $ 45,803   $ 44,689   2   % expenses                                                                                  Balance Sheet                                                                                             As of June 30,                                                                               % (dollars in thousands)       2014          2013                                                                         Increase Total assets                   $ 2,868,928   $ 2,658,405     8    %                                                                     Total loans (net)                1,827,544       1,605,828     14   %                                                                      Total deposits                   2,186,980       2,168,759     1    %                                                                      Total core deposits              2,119,262       2,102,450     1    %                                                                      Total stockholders' equity    248,770      228,468     9    %                                                                       Lending  Gross loans totaled $1.85 billion at June30, 2014, an increase of $217.9 million, or 13%, over June30, 2013. The composition of the Company's loan portfolio at June30, 2014 and June30, 2013 was as follows:                                                                      (dollars in      June 30,        % of      June 30,        % of      $               % thousands)     2014                  2013                                                                 Total                     Total     Change          Change Commercial and            $ 467,587     25  %   $ 415,740     25  %   $ 51,847      12  % industrial Commercial         76,674        4           82,455        5           (5,781  )     (7  ) tax-exempt Owner occupied           308,708       17          288,702       18          20,006        7 real estate Commercial construction                    130,449       7           105,596       6           24,853        24 and land development Commercial         544,544       29          433,628       27          110,916       26 real estate Residential        103,564       6           90,590        6           12,974        14 Consumer        220,289     12      217,155     13      3,134      1    Gross loans    $ 1,851,815   100 %   $ 1,633,866   100 %   $ 217,949    13  %                                                                                        Asset Quality  The Company's asset quality ratios are shown below:                                                                          Quarters Ended                                    June 30, 2014   March 31,   June 30,                                                         2014          2013 Nonperforming assets/total assets     1.42     %      1.57   %    1.81  % Net loan charge-offs                  0.17     %        0.02   %      0.31  % (annualized)/average total loans Loan loss allowance/total loans       1.31     %        1.33   %      1.72  % Nonperforming loan coverage           66       %        59     %      64    % Nonperforming assets/capital and    15       %      17     %    19    % reserves                                                                               Nonperforming assets decreased during the second quarter of 2014 by $4.2 million, or 9%, to $40.7 million, or 1.42%, of total assets at June30, 2014, compared to $44.9 million, or 1.57%, of total assets at March31, 2014, and compared to $48.1 million, or 1.81%, of total assets one year ago. Nonperforming assets were down $7.5 million, or 15%, over the past twelve months.  Nonperforming loans decreased by $4.2 million during the second quarter of 2014, while foreclosed asset balances increased by $30,000. Compared to June30, 2013, nonperforming loans decreased $6.9 million, or 16%, and foreclosed assets decreased $591,000, or 13%.  Net loan charge-offs totaled $763,000 for the second quarter of 2014, comprised of $1.3 million in gross loan charge-offs offset partially by $535,000 in recoveries. Total net charge-offs for the first six months of 2014 were $839,000, or 0.09%, of average loans outstanding compared to $1.3 million, or 0.17%, for the first half of 2013.  The Company recorded a provision for loan losses of $1.1 million for the second quarter of 2014 as compared to $900,000 for the previous quarter and $1.8 million recorded in the second quarter of 2013. The allowance for loan losses totaled $24.3 million as of June30, 2014, compared to $23.9 million at March31, 2014 and to $28.0 million at June30, 2013. The allowance represented 1.31% of gross loans outstanding at June30, 2014, compared to 1.33% at March31, 2014 and 1.72% at June30, 2013.  Deposits  The Company's deposit balances at June30, 2014 were $2.19 billion, compared to total deposits of $2.20 billion at March31, 2014 and compared to $2.17 billion one year ago. The change in core deposits over the past twelve months by type of account is as follows:                                                                                      As of June 30,                                                                                               2nd                                                            %          Quarter (dollars in thousands)   2014          2013                   2014                                                            Change                                                                       Cost of                                                                       Funds Demand                     $ 508,012     $ 463,805       10  %      0.00  % noninterest-bearing Demand                       1,014,347       1,009,321     —          0.28 interest-bearing Savings                   474,416      503,110     (6  )    0.28   Subtotal                     1,996,775       1,976,236     1          0.21   Time                      122,487      126,214     (3  )    1.03   Total core deposits      $ 2,119,262   $ 2,102,450   1   %    0.26  %                                                                         Total core deposits, excluding time deposits, increased $20.5 million, over the past twelve months and decreased by $5.6 million, on a linked quarter basis. The cost of core deposits, excluding time deposits, during the second quarter of 2014 was 0.21%, compared to 0.22% for both the previous quarter and the second quarter one year ago. The cost of total core deposits for the second quarter of 2014 was 0.26%, which was down 1 bp from the previous quarter and down 3 bps from second quarter of 2013.  Change in core deposits by type of customer was as follows:                                                                              June 30,      % of    June 30,      % of    % (dollars in       2014          Total   2013          Total   Change thousands) Consumer            $ 996,772       47  %     $ 971,156       46  %     3    % Commercial            725,106       34          664,851       32        9 Government         397,384     19      466,443     22     (15  ) Total             $ 2,119,262   100 %   $ 2,102,450   100 %   1    %                                                                           Investments  At June30, 2014, the Company's investment portfolio totaled $844.9 million, down $15.0 million, or 2%, on a linked quarter basis and down $18.6 million, or 2%, compared to June30, 2013. Detailed below is information regarding the composition and characteristics of the portfolio at June30, 2014:                                                                                                Available       Held to Product Description                                          Total                                    for Sale        Maturity (dollars in thousands)                                       U.S. Government agencies/other     $ 31,642        $ 149,105       $ 180,747 Mortgage-backed securities: Federal government agencies          62,737          7,515           70,252 pass through certificates Agency collateralized mortgage       444,912         112,405         557,317 obligations Corporate debt securities            —               5,000           5,000 Municipal securities              27,546      3,994       31,540   Total                            $ 566,837    $ 278,019    $ 844,856  Duration (in years)                  4.7             6.1             5.2 Average life (in years)              5.3             7.1             5.9 Quarterly average yield           2.26    %    2.53    %    2.39    % (annualized)                                                                      At June30, 2014, the after-tax unrealized loss on the Bank's available for sale portfolio was $8.8 million, as compared to an after-tax unrealized loss of $16.5 million at December 31, 2013 and compared to an after-tax unrealized loss of $8.0 million at June30, 2013.  Capital  Stockholders' equity at June30, 2014 totaled $248.8 million, compared to $228.5 million at June30, 2013. Return on average stockholders' equity (ROE) for the second quarter of 2014 was 8.30%, compared to 8.42% for the previous quarter and up over 6.90% for the second quarter last year. ROE for the first six months of 2014 was 8.36%, compared to 6.59% for the first half of 2013.  The Company's capital ratios at June30, 2014 and 2013 were as follows:                                                                                        Regulatory                  6/30/2014   6/30/2013   Guidelines “Well                                                 Capitalized” Leverage ratio   9.57   %    9.37   %    5.00       % Tier 1             13.36         13.63         6.00 Total capital    14.55      14.89      10.00                                                        Both the Company and its subsidiary bank continue to maintain strong capital ratios and are well capitalized under various regulatory capital guidelines as required by federal banking agencies.  At June30, 2014, the Company's book value per common share was $17.45 compared to $16.09 one year ago.  The market price of Metro's common stock increased by 15% from $20.03 per common share at June30, 2013 to $23.12 per common share at June30, 2014.  Forward-Looking Statements  This document contains forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933, as amended, which we refer to as the Securities Act and Section 21E of the Securities Exchange Act of 1934, which we refer to as the Exchange Act, with respect to the financial condition, liquidity, results of operations, future performance and business of Metro Bancorp, Inc. These forward-looking statements are intended to be covered by the safe harbor for "forward-looking statements" provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are those that are not historical facts. These forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, estimates and intentions that are subject to significant risks and uncertainties and are subject to change based on various factors (some of which are beyond our control). The words "may," "could," "should," "would," "believe," "anticipate," "estimate," "expect," "intend," "plan" and similar expressions are intended to identify forward-looking statements.  While we believe our plans, objectives, goals, expectations, anticipations, estimates and intentions as reflected in these forward-looking statements are reasonable, we can give no assurance that any of them will be achieved. You should understand that various factors, in addition to those discussed elsewhere in this document, could affect our future results and could cause results to differ materially from those expressed in these forward-looking statements, including:    *the effects of and changes in, trade, monetary and fiscal policies,     including interest rate policies of the Board of Governors of the Federal     Reserve System, including the duration of such policies;   *general economic or business conditions, either nationally, regionally or     in the communities in which we do business, may be less favorable than     expected, resulting in, among other things, a deterioration in credit     quality and loan performance or a reduced demand for credit;   *the effects of ongoing short and long-term federal budget and tax     negotiations and their effects on economic and business conditions in     general and our customers in particular;   *the effects of the failure of the federal government to reach a deal to     permanently raise the debt ceiling and the potential negative results on     economic and business conditions;   *the impact of the Dodd-Frank Wall Street Reform and Consumer Protection     Act (Dodd-Frank Act) and other changes in financial services’ laws and     regulations (including laws concerning taxes, banking, securities and     insurance);   *possible impacts of the capital and liquidity requirements of the Basel     III standards and other regulatory pronouncements;   *continued effects of the aftermath of recessionary conditions and the     impacts on the economy in general and our customers in particular,     including adverse impacts on loan utilization rates as well as     delinquencies, defaults and customers' ability to meet credit obligations;   *our ability to manage current levels of impaired assets;   *continued levels of loan volume origination;   *the adequacy of the allowance for loan losses;   *the impact of changes in Regulation Z and other consumer credit protection     laws and regulations;   *changes resulting from legislative and regulatory actions with respect to     the current economic and financial industry environment;   *changes in the Federal Deposit Insurance Corporation (FDIC) deposit fund     and the associated premiums that banks pay to the fund;   *interest rate, market and monetary fluctuations;   *the results of the regulatory examination and supervision process;   *unanticipated regulatory or legal proceedings and liabilities and other     costs;   *compliance with laws and regulatory requirements of federal, state and     local agencies;   *our ability to continue to grow our business internally or through     acquisitions and successful integration of new or acquired entities while     controlling costs;   *deposit flows;   *the willingness of customers to substitute competitors’ products and     services for our products and services and vice versa, based on price,     quality, relationship or otherwise;   *changes in consumer spending and saving habits relative to the financial     services we provide;   *the ability to hedge certain risks economically;   *the loss of certain key officers;   *changes in accounting principles, policies and guidelines as may be     adopted by the regulatory agencies, as well as the Public Company     Accounting Oversight Board, the Financial Accounting Standards Board     (FASB), and other accounting standards setters;   *the timely development of competitive new products and services by us and     the acceptance of such products and services by customers;   *rapidly changing technology;   *continued relationships with major customers;   *effect of terrorist attacks and threats of actual war;   *other economic, competitive, governmental, regulatory and technological     factors affecting the Company’s operations, pricing, products and     services;   *interruption or breach in security of our information systems resulting in     failures or disruptions in customer account management, general ledger     processing and loan or deposit systems;   *our ability to maintain compliance with the exchange rules of The Nasdaq     Stock Market, Inc.;   *our ability to maintain the value and image of our brand and protect our     intellectual property rights;   *disruptions due to flooding, severe weather or other natural disasters or     Acts of God; and   *our success at managing the risks involved in the foregoing.  Because such forward-looking statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such statements. The foregoing list of important factors is not exclusive and you are cautioned not to place undue reliance on these factors or any of our forward-looking statements, which speak only as of the date of this document or, in the case of documents incorporated by reference, the dates of those documents. We do not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time by or on behalf of us except as required by applicable law.   Metro Bancorp, Inc. and Subsidiaries Selected Consolidated Financial Data                                                                                                                                  At or for the                                                            At or for the                Three Months Ended                                                     Six Months Ended (dollars in thousands,        June 30,          March 31,         %          June 30,       %          June 30,          June 30,          % except per      2014            2014            Change   2013         Change   2014            2013            Change share amounts) Income Statement Data: Net interest      $ 23,995          $ 23,335          3   %      $ 22,599       6    %     $ 47,330          $ 44,934          5    % income Provision for       1,100             900             22           1,800        (39  )       2,000             4,100           (51  ) loan losses Noninterest         7,495             7,078           6            7,334        2            14,573            14,709          (1   ) income Total               31,490            30,413          4            29,933       5            61,903            59,643          4 revenues Noninterest         23,021            22,782          1            22,360       3            45,803            44,689          2 expenses Net income          5,081             4,944           3            4,048        26           10,025            7,693           30 Per Common Share Data: Net income per common share: Basic             $ 0.36            $ 0.35            3   %      $ 0.28         29   %     $ 0.70            $ 0.54            30   % Diluted             0.35              0.34            3            0.28         25           0.70              0.54            30                                                                                                                                      Book Value        $ 17.45           $ 16.92                      $ 16.09                   $ 17.45           $ 16.09           8                                                                                                                                      Weighted average common shares outstanding: Basic               14,184            14,161                       14,137                    14,172            14,134 Diluted             14,387            14,344                       14,256                    14,366            14,209 Balance Sheet Data: Total assets      $ 2,868,928       $ 2,850,039       1   %                                $ 2,868,928       $ 2,658,405       8    % Loans (net)         1,827,544         1,778,311       3                                      1,827,544         1,605,828       14 Allowance for       24,271            23,934          1                                      24,271            28,038          (13  ) loan losses Investment          844,856           859,887         (2  )                                  844,856           863,462         (2   ) securities Total               2,186,980         2,195,272       —                                      2,186,980         2,168,759       1 deposits Core deposits       2,119,262         2,128,101       —                                      2,119,262         2,102,450       1 Stockholders'       248,770           240,787         3                                      248,770           228,468         9 equity Capital: Total stockholders'                         8.45      %                                            8.67      %       8.59      % equity to assets Leverage                              9.48                                                   9.57              9.37 ratio Risk based capital ratios: Tier 1                                13.39                                                  13.36             13.63 Total Capital                         14.59                                                  14.55             14.89 Performance Ratios: Deposit cost        0.26      %       0.27      %                  0.29   %                  0.26      %       0.30      % of funds Cost of funds       0.31              0.31                         0.33                      0.31              0.34 Net interest        3.50              3.48                         3.52                      3.49              3.55 margin Return on average             0.72              0.72                         0.60                      0.72              0.58 assets Return on average             8.30              8.42                         6.90                      8.36              6.59 stockholders' equity Asset Quality: Net charge-offs (annualized)        0.17      %       0.02      %                  0.31   %                  0.09      %       0.17      % to average loans outstanding Nonperforming assets to total               1.42              1.57                                                   1.42              1.81 period-end assets Allowance for loan losses to total            1.31              1.33                                                   1.31              1.72 period-end loans Allowance for loan losses to period-end       66                59                                                     66                64 nonperforming loans Nonperforming assets to        15            17                                    15            19                capital and allowance                                                                                                                                                                                                    Metro Bancorp, Inc. and Subsidiaries Consolidated Balance Sheets                                                                                                                    June 30,          December 31,                                                2014              2013 (in thousands, except share and per share    (Unaudited)                amounts)                                                                               Assets                                                               Cash and cash equivalents                      $ 59,203          $ 44,996 Securities, available for sale at fair           566,837           585,923 value Securities, held to maturity at cost (fair       278,019           283,814 value 2014: $268,243; 2013: $263,697) Loans, held for sale                             5,881             6,225 Loans receivable, net of allowance for loan losses (allowance 2014: $24,271;            1,827,544         1,727,762 2013: $23,110) Restricted investments in bank stock             23,955            20,564 Premises and equipment, net                      74,393            75,783 Other assets                                  33,096        36,051     Total assets                                 $ 2,868,928    $ 2,781,118                                                                                Liabilities and Stockholders' Equity                                 Deposits: Noninterest-bearing                            $ 508,012         $ 443,287 Interest-bearing                              1,678,968     1,796,334  Total deposits                                   2,186,980         2,239,621 Short-term borrowings                            401,675           277,750 Long-term debt                                   15,800            15,800 Other liabilities                             15,703        17,764     Total liabilities                                2,620,158         2,550,935 Stockholders' Equity: Preferred stock - Series A noncumulative; $10.00 par value; $1,000 liquidation             400               400 preference; (1,000,000 shares authorized; 40,000 shares issued and outstanding) Common stock - $1.00 par value; 25,000,000 shares authorized; (issued and outstanding       14,194            14,157 shares 2014: 14,193,513; 2013: 14,157,219) Surplus                                          159,476           158,650 Retained earnings                                83,476            73,491 Accumulated other comprehensive loss          (8,776    )    (16,515   ) Total stockholders' equity                    248,770       230,183    Total liabilities and stockholders' equity   $ 2,868,928    $ 2,781,118                                                                                                                                               Metro Bancorp, Inc. and Subsidiaries Consolidated Statements of Income (Unaudited)                                                                                      Three Months Ended          Six Months Ended                              June 30,                    June 30, (in thousands, except      2014       2013         2014       2013 per share amounts) Interest Income                                          Loans receivable, including fees: Taxable                      $ 19,938     $ 18,516       $ 39,148     $ 36,487 Tax-exempt                     834          905            1,695        1,836 Securities: Taxable                        5,018        5,007          10,064       10,366 Tax-exempt                  191       184        381       368 Total interest income       25,981    24,612     51,288    49,057 Interest Expense                                         Deposits                       1,401        1,525          2,835        3,144 Short-term borrowings          278          181            509          312 Long-term debt              307       307        614       667 Total interest expense      1,986     2,013      3,958     4,123 Net interest income            23,995       22,599         47,330       44,934 Provision for loan          1,100     1,800      2,000     4,100 losses Net interest income after provision for loan    22,895    20,799     45,330    40,834 losses Noninterest Income                                       Service charges, card          7,357        7,093          14,288       14,025 and other income Gains on sales of loans     138       250        274       663 Total fees and other        7,495     7,343      14,562    14,688 income Net gains (losses) on sales/calls of              —         (9     )    11        21 securities Total noninterest income    7,495     7,334      14,573    14,709 Noninterest Expenses                                     Salaries and employee          11,055       10,391         22,482       21,216 benefits Occupancy and equipment        3,098        3,335          6,603        6,545 Advertising and                376          389            769          745 marketing Data processing                3,320        3,276          6,570        6,482 Regulatory assessments         584          551            1,153        1,085 and related costs Other                       4,588     4,418      8,226     8,616 Total noninterest           23,021    22,360     45,803    44,689 expenses Income before taxes            7,369        5,773          14,100       10,854 Provision for federal       2,288     1,725      4,075     3,161 income taxes Net income                 $ 5,081    $ 4,048     $ 10,025   $ 7,693 Net Income per Common Share Basic                        $ 0.36       $ 0.28         $ 0.70       $ 0.54 Diluted                     0.35      0.28       0.70      0.54 Average Common and Common Equivalent Shares Outstanding Basic                          14,184       14,137         14,172       14,134 Diluted                     14,387    14,256     14,366    14,209                                                                            Metro Bancorp, Inc. and Subsidiaries Average Balances and Net Interest Income (unaudited)                                                                                                                                                                                                                                                                                                                                                                                     Quarters ended,                                                                                                         Year-to-date,                        June 30, 2014                         March 31, 2014                        June 30, 2013                         June 30, 2014                         June 30, 2013                           Average                      Avg.       Average                      Avg.       Average                      Avg.       Average                      Avg.       Average                      Avg.                           Balance       Interest   Rate     Balance       Interest   Rate     Balance       Interest   Rate     Balance       Interest   Rate     Balance       Interest   Rate (dollars in thousands) Earning Assets Investment securities: Taxable                   $ 858,174       $ 5,018      2.34 %     $ 876,249       $ 5,046      2.30 %     $ 889,510       $ 5,007      2.25 %     $ 867,161       $ 10,064     2.32 %     $ 903,261       $ 10,366     2.30 % Tax-exempt               30,941       293      3.79     30,927       293      3.79     29,871       284      3.80     30,934       586      3.79     29,870       567      3.80  Total securities            889,115         5,311      2.39         907,176         5,339      2.35         919,381         5,291      2.30         898,095         10,650     2.37         933,131         10,933     2.34 Total loans              1,830,846    21,222   4.60     1,775,981    20,534   4.63     1,628,073    19,908   4.85     1,803,564    41,756   4.62     1,591,199    39,311   4.93  receivable Total earning assets    $ 2,719,961   $ 26,533   3.88 %   $ 2,683,157   $ 25,873   3.86 %   $ 2,547,454   $ 25,199   3.93 %   $ 2,701,659   $ 52,406   3.87 %   $ 2,524,330   $ 50,244   3.97 % Sources of Funds Interest-bearing deposits: Regular savings           $ 464,780       $ 319        0.28 %     $ 460,324       $ 336        0.30 %     $ 424,474       $ 335        0.32 %     $ 462,564       $ 654        0.29 %     $ 419,414       $ 661        0.32 % Interest checking and       1,033,565       709        0.28         1,070,068       719        0.27         1,039,872       733        0.28         1,051,715       1,429      0.27         1,058,702       1,535      0.29 money market Time deposits               124,209         318        1.03         126,453         329        1.06         130,015         397        1.22         125,325         647        1.04         134,298         844        1.27 Public time and other    69,071       55       0.32     64,717       50       0.32     59,894       60       0.40     66,906       105      0.32     57,423       104      0.37  noncore deposits Total interest-bearing            1,691,625       1,401      0.33         1,721,562       1,434      0.34         1,654,255       1,525      0.37         1,706,510       2,835      0.34         1,669,837       3,144      0.38 deposits Short-term borrowings       387,611         278        0.28         356,554         231        0.26         325,044         181        0.22         372,168         509        0.27         277,243         312        0.22 Long-term debt           15,800       307      7.77     15,800       307      7.77     15,800       307      7.77     15,800       614      7.77     26,297       667      5.07  Total interest-bearing            2,095,036       1,986      0.38         2,093,916       1,972      0.38         1,995,099       2,013      0.40         2,094,478       3,958      0.38         1,973,377       4,123      0.42 liabilities Demand deposits          476,605                      446,131                      440,573                      461,452                      436,850                   (noninterest-bearing) Sources to fund             2,571,641       1,986      0.31         2,540,047       1,972      0.31         2,435,672       2,013      0.33         2,555,930       3,958      0.31         2,410,227       4,123      0.34 earning assets Noninterest-bearing      148,320                      143,110                      111,782                      145,729                      114,103                   funds (net) Total sources to fund   $ 2,719,961   $ 1,986    0.29 %   $ 2,683,157   $ 1,972    0.30 %   $ 2,547,454   $ 2,013    0.32 %   $ 2,701,659   $ 3,958    0.29 %   $ 2,524,330   $ 4,123    0.33 % earning assets                                                                                                                                                                                                                              Net interest income and margin on a                           $ 24,547     3.59 %                     $ 23,901     3.56 %                     $ 23,186     3.62 %                     $ 48,448     3.58 %                     $ 46,121     3.64 % tax-equivalent basis Tax-exempt adjustment                      552                                    566                                    587                                    1,118                                  1,187 Net interest income                 $ 23,995   3.50 %               $ 23,335   3.48 %               $ 22,599   3.52 %               $ 47,330   3.49 %               $ 44,934   3.55 % and margin                                                                                                                                                                                                                              Other Balances: Cash and due from         $ 42,777                                $ 43,752                                $ 50,801                                $ 43,262                                $ 46,831 banks Other assets                70,878                                  68,553                                  90,398                                  69,722                                  91,178 Total assets                2,833,616                               2,795,462                               2,688,653                               2,814,643                               2,662,339 Other liabilities           16,325                                  17,253                                  17,725                                  16,786                                  16,763 Stockholders' equity     245,650                      238,162                      235,256                      241,927                      235,349                                                                                                                                                                                                                                                  Metro Bancorp, Inc. and Subsidiaries Summary of Allowance for Loan Losses and Other Related Data (Unaudited)                 Three Months Ended          Year Ended    Six Months Ended                  June 30,                      December        June 30,                                                31, (dollars in    2014         2013         2013          2014         2013 thousands)                                                                           Balance at beginning of     $ 23,934       $ 27,472       $ 25,282        $ 23,110       $ 25,282 period Provisions charged to      1,100      1,800      6,875       2,000      4,100   operating expenses                    25,034         29,272         32,157          25,110         29,382 Recoveries of loans previously charged-off: Commercial and                244            194            1,122           1,249          332 industrial Commercial         —              —              —               —              — tax-exempt Owner occupied           43             —              3               286            3 real estate Commercial construction       111            12             490             211            498 and land development Commercial         101            —              —               174            — real estate Residential        20             —              10              20             3 Consumer        16         22         76          39         58      Total           535        228        1,701       1,979      894     recoveries Loans charged-off: Commercial and                (501   )       (1,228 )       (3,427  )       (855   )       (1,264 ) industrial Commercial         —              —              —               —              — tax-exempt Owner occupied           (171   )       (52    )       (295    )       (196   )       (236   ) real estate Commercial construction       (527   )       (8     )       (2,844  )       (539   )       (25    ) and land development Commercial         —              (141   )       (2,773  )       (716   )       (223   ) real estate Residential        (19    )       (14    )       (332    )       (302   )       (130   ) Consumer        (80    )    (19    )    (1,077  )    (210   )    (360   ) Total           (1,298 )    (1,462 )    (10,748 )    (2,818 )    (2,238 ) charged-off Net             (763   )    (1,234 )    (9,047  )    (839   )    (1,344 ) charge-offs Balance at end of         $ 24,271    $ 28,038    $ 23,110     $ 24,271    $ 28,038  period Net charge-offs (annualized) as a               0.17   %       0.31   %       0.55    %       0.09   %       0.17   % percentage of average loans outstanding Allowance for loan losses as a percentage         1.31   %       1.72   %       1.32    %       1.31   %       1.72   % of period-end loans                                                                                                                                                               Metro Bancorp, Inc. and Subsidiaries Summary of Nonperforming Loans and Assets (Unaudited)                                                                                          The following table presents information regarding nonperforming loans and assets as of June 30, 2014 and for the preceding four quarters (dollar amounts in thousands).                                                                                    June 30,       March 31,      December       September      June 30,                                                  31,            30,                 2014         2014         2013         2013         2013 Nonperforming Assets Nonaccrual loans: Commercial and     $ 4,291        $ 9,014        $ 10,217       $ 9,967        $ 12,053 industrial Commercial           —              —              —              —              — tax-exempt Owner occupied       6,401          6,005          4,838          4,924          4,999 real estate Commercial construction         9,028          10,734         8,587          11,723         12,027 and land development Commercial           5,793          6,043          6,705          6,904          3,893 real estate Residential          6,341          6,551          7,039          7,316          7,133 Consumer          2,479      2,524      2,577      2,541      3,422   Total nonaccrual           34,333         40,871         39,963         43,375         43,527 loans Loans past due 90 days or        2,335      —          369        119        —       more and still accruing Total nonperforming        36,668         40,871         40,332         43,494         43,527 loans Foreclosed        4,020      3,990      4,477      3,556      4,611   assets Total nonperforming    $ 40,688    $ 44,861    $ 44,809    $ 47,050    $ 48,138  assets                                                                                          Troubled Debt Restructurings (TDRs) Nonaccruing TDRs (included     $ 17,748       $ 19,862       $ 17,149       $ 23,621       $ 18,817 in nonaccrual loans above) Accruing TDRs     11,309     9,970      12,091     11,078     14,888  Total TDRs       $ 29,057    $ 29,832    $ 29,240    $ 34,699    $ 33,705                                                                                           Nonperforming loans to total       1.98   %       2.27   %       2.30   %       2.55   %       2.66   % loans                                                                                          Nonperforming assets to            1.42   %       1.57   %       1.61   %       1.71   %       1.81   % total assets                                                                                          Nonperforming        66     %       59     %       57     %       63     %       64     % loan coverage                                                                                          Allowance for loan losses as a percentage         1.31   %       1.33   %       1.32   %       1.61   %       1.72   % of total period-end loans                                                                                          Nonperforming assets / capital plus      15     %    17     %    18     %    18     %    19     % allowance for loan losses                                                                                           Contact:  Metro Bancorp, Inc. Gary L. Nalbandian Chairman/President (717) 412-6301 or Mark A. Zody Chief Financial Officer (717) 412-6301  
Press spacebar to pause and continue. Press esc to stop.